Yesterday’s bipartisan Senate Finance Committee vote to renew a variety of expired and expiring tax breaks — including a key credit for the wind industry and a suite of incentives for alternative fuels and biofuels producers, energy efficiency programs and transit programs — drew cheers from industries that won extension of their incentives and raised optimism that the breaks would be included in a yet-to-be-unveiled House version of the package.
Senate Republicans rebuffed their presumptive presidential nominee as the Senate Finance Committee passed a one-year extension of the tax credit for wind energy, just four days after Mitt Romney’s campaign announced that it wanted the credit to die. The lawmakers had tried to unite around the position of the Republican presidential hopeful, leaving the wind production credit out of a slate of business tax breaks to be formally drafted on Thursday. But that drive faltered when Senator Charles E. Grassley, Republican of Iowa, angrily told colleagues he would join with Democrats to add the extension back, according to Finance Committee aides. Rather than have a public fight, senators quietly inserted the one-year, $3.3 billion tax break before the committee took up the suite of tax breaks and passed them Thursday afternoon.
Mitt Romney‘s opposition to a $5.2 billion wind tax credit is roiling Capitol Hill, where wind-state Republicans are scrambling to figure out how to save the credit without exposing sharp differences with their party’s presidential candidate. Republicans and Democrats had agreed to include the tax break, known as a production tax credit, in a package designed to extend expiring business tax breaks. But after Mr. Romney came out against the tax credit, Republicans were put in a tough spot. The result: The tax credit was omitted from a tax-extenders plan announced shortly after midnight that is to be voted on Thursday in the Senate Finance Committee.
A longstanding tax credit for wind power that has broad bipartisan support was caught Wednesday in presidential politics when Senate Republicans removed it from a usually routine package of business tax breaks to show their loyalty to their presumptive presidential nominee, Mitt Romney. Mr. Romney on Monday came out in favor of letting the wind production tax credit lapse at the end of the year, just as Senate Finance Committee members were nearing completion of a hard-fought package of business tax breaks they hope to pass out of the committee on Thursday. Those negotiations were largely about paring back the package, which routinely passes without much scrutiny.
An extension of a key tax break for the wind industry remained in flux last night, but aides said it was likely to be reinserted this morning into a bill renewing a variety of expired and expiring tax credits that will be marked up today by the Senate Finance Committee, as senators filed a number of other energy-related amendments. Senate Finance Chairman Max Baucus (D-Mont.) plans to offer a “chairman’s mark” of the package that is likely to include the production tax credit for wind, a tax break vital to the industry that had been omitted from an earlier version of the legislation, a committee aide said last night.
A new study pinpoints for the first time thousands of square miles of already disturbed land across the Northern Great Plains where wind turbines could be sited to produce enough electricity to power tens of millions of homes without significantly affecting wildlife habitat. The peer-reviewed study published this month in the journal PLoS ONE and led by researchers at the Nature Conservancy found that siting wind development on mostly cropland and other disturbed sites could produce more than 1 million megawatts of electricity. That’s more than four times the amount of electricity needed to meet an Energy Department goal for wind power to provide 20 percent of the nation’s electricity by 2030.
Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission, warned today against allowing a key wind industry tax credit to expire at year’s end, saying it could devastate the industry. “Like anything else that the government does, it’s always good to provide the industry with some level of certainty,” Wellinghoff told reporters at the Platts Energy Podium in Washington, D.C., today. “I think that just a sort of arbitrary and immediate cutoff of a tax credit for that industry could have a devastating effect.”
Democrats, environmentalists and clean energy backers hope GOP presidential candidate Mitt Romney’s solidified opposition to a key wind energy tax break helps motivate voters in closely contested, windy states to tip the election toward President Obama. Romney’s campaign Monday said for the first time that the presumptive Republican nominee would like to see the production tax credit (PTC) lapse as scheduled at the end of this year (E&E Daily, July 31). That position puts him at odds with Republicans in states like Iowa that want to see the credit extended, and it is a harder line than had been taken by many senior GOP lawmakers, who have said the credit should phase out over a number of years.
The Senate Finance Committee will mark up a tax extenders package tomorrow that includes “renewable energy incentives,” committee leaders announced early this morning. The committee had been negotiating for weeks on the package, which will include “dozens” of targeted tax incentives that are set to expire at the end of this year or expired last year.
A 70-megawatt wind farm in northwest Maryland would be the first in the Northeast to receive an approved habitat conservation plan under a draft proposal unveiled today by the Fish and Wildlife Service.